I am supposed to make up a company, its balance sheet, 25 journal entires, then do it's trial balance and all other financial statements. However, I can't get my trial balance to balance. Can anyone figure out why? I've been looking at it for hours and I can't find it. Thanks so much!
Protégé Co.
Balance Sheet
As of 04/31/07
Assets
Current Assets
Cash 2,000,000
Accounts Receivable 1,030,000
Less: Allowance (30,000) 1,000,000
Materials 200,000
Work in Process 200,000
Finished Goods 400,000
Pre Paid Rent 24,000
Property Plant and Equipment
Machines 800,000
Less: Depreciation (150,000) 650,000
Buildings 1,700,000
Less: Depreciation (900,000) 800,000
Land 2,500,000
Asset Total 7,774,000
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts Payable 510,000
Dividends Payable 100,000
Long Term Debt
Bonds Payable 1,800,000
Add: Premium 800,000 2,600,000
Liability Total 3,600,000
Stockholders’ Equity
Preferred Stock - $10 par (100,000 shares) 1,000,000
Common Stock - $2 par (750, 000) 1,500,000
Paid In Capital- Common Stock 64,000
Retained Earnings 2,500,000
Treasury Stock - $5 par (100,000) (500,000)
Stockholders’ Equity Total 4,174,000
Total Liabilities and Stockholders’ Equity 7,774,000
1. Cash 1,800,000
Sales 1,800,000
To record cash sales for the year.
2. Accounts Receivable 700,000
Sales 700,000
To record receivables for the year from sales.
3. Materials 600,000
Accounts Payable 600,000
To record purchase of materials on account.
4. Cash 200,000
Accounts Receivable 200,000
To record payments received from account.
5. Accounts Payable 500,000
Cash 500,000
To record a payments on accounts payable.
6. Dividends Payable 100,000
Cash 100,000
To record the payment of dividends from the previous statement.
7. Building 122,783
Discount 77,217
Note Payable 200,000
To record the agreement of a note payable.
8. Interest Expense 5627
Discount 5627
To record the interest and amortization of the discount of the note.
9. Interest Expense 2388
Premium 2612
Cash 5000
To record interest expense and the amortization of the premium on the bond payable.
10. Interest Expense 2336
Premium 2664
Cash 5000
To record interest expense and the amortization of the premium on the bond payable.
Interest Expense 192
Premium 225
Interest Payable 417
To record interest expense and the amortization of the premium on the bond payable.
11. Interest Payable 417
Bonds Payable 100,000
Premium 14969
Gain 16969
Cash 98417
To record the payment of the principle, remaining interest, and the gain from the retirement of the bond.
12. Pre Paid Rent 120,000
Cash 120,000
To record the purchase of pre paid rent.
13. Rental Expense 24000
Pre Paid Rent 24000
To record the period’s rent expense and reduce the pre paid rent asset.
14. Work in Process 700,000
Materials 700,000
15. Work in Process 1,000,000
Wages Payable 1,000,000
16. Manufacturing Overhead – Budgeted 800,000
Salaries Payable 800,000
Work in Process 700,000
Manufacturing Overhead - Budgeted 700,000
17. Finished Goods 1,075,000
Work in Process 1,075,000
18. Cost of Goods Sold 1,100,000
Finished Goods 1,100,000
19. Investment in Brooks and Dunn 500,000
Cash 500,000
20. Cash 10,000
Investment in B&D 10,000
21. Invest in B&D 4,020,000
Investment Income 4,020,000
22. Investment Income 666,667
Investment in B&D 666,667
23. Accounts Receivable 1500
Allowance for Doubtful Accounts 1500
24. Cash 1500
Accounts Receivable 1500
25. Common Stock 50,000
Treasury Stock 50,000
26. Cash 200,000
Treasury Stock 160,000
APIC- Treasury Stock 40,000
To reissue 20,000 shares of treasury stock at $10 per share, which was originally bought for $8 per share.
27. Dividends Declared 74,500
Dividends Payable 74,500
Protégé Co. declares a 2% preferred stock dividend, and a .05 per share common stock dividend.
Depreciation Expense 2,050,000
Accumulated Depreciation 2,050,000
Allowance for Doubtful Accounts 29,000
Accounts Receivable 29,000
Trial Balance
Cash 2,881,583
Accounts Receivable 1,500,000
Materials 100,000
Work in Process 1,525,000
Finished Goods 375,000
Pre Paid Rent 120,000
Machines 650,000
Machine Depreciation 0
Buildings 922,783
Buildings Depreciation 0
Land 2,500,000
Accounts Payable 610,000
Dividend Payable 74,500
Bond Payable 1,700,000
Premium – Bond 779,530
Sales 2,500,000
Discount – Notes 71,590
Note Payable 200,000
Preferred Stock 1,000,000
Common Stock 1,450,000
APIC - Common Stock 64,000
APIC - Treasury Stock 40,000
Retained Earnings 2,500,000
Treasury Stock 290,000
Interest Expense 10543
Interest Payable 0
Gain- Bond 16,969
Rental Expense 2,400
Wages Payable 1,000,000
Manufacturing Overhead – Budgeted 100,000
Manufacturing Overhead – Actual 0
Salaries Payable 800,000
Cost of Goods Sold 1,100,000
Dividends Declared 74,500
Investment in Brooke’s and Dunn 3,843,333
Investment Income 3,353,333
